TCFD
We are aligning our climate change-related disclosures with the TCFD recommendations, and completed and published our first set of TCFD-aligned climate disclosures in 2023 which will form the basis for continual refinement and improvement. Our disclosures in this report align with the TCFD recommendations, categorised according to four thematic areas that represent core elements of how organisations operate: Governance, Strategy, Risk Management and Metrics & Targets. We also report to the CDP (formerly known as the Carbon Disclosure Project) which has aligned to the TCFD recommendations framework.
Improving our climate change disclosure
We recognise the challenges in climate change reporting and acknowledge the increasing acceptance of the Task Force for Climate-related Financial Disclosures (TCFD) recommendations as the dominant climate change disclosure framework.
The Financial Stability Board created the TCFD to improve and increase reporting of climate-related financial information. The TCFD aims to assist listed companies in providing clear, comprehensive, high-quality information on the impacts of climate change. This includes the risks and opportunities of rising temperatures, climate-related policy and emerging technologies in our changing world.
In 2021 we began establishing a climate change approach across our functions as a regulator, an exchange and a listed company. We conducted a self-assessment against the TCFD Framework to assess our key gaps to begin the journey towards TCFD-aligned climate change disclosure.
This included assessing the gaps in our reporting and outlining the associated actions for implementation. We also reviewed our role in assisting our market with disclosure practices, including helping our listed companies improve their climate change disclosure.
We are aligning our climate change-related disclosures with the TCFD recommendations, and we completed the first phase of this work in the 2022 reporting year. We currently report to the CDP (formerly the Carbon Disclosure Project. In 2023, we plan to publish our first full TCFD-aligned set of climate disclosures.
Read more about our work regarding climate change in our 2022 Sustainability Report.
Our advocacy role
We support South Africa’s just transition and has joined the Race to Zero Partner Initiative through the Net Zero Financial Service Providers Alliance and the Glasgow Financial Alliance for Net Zero.
In addition, we chair the Financial Sector Climate Risk Forum’s Sustainable Finance Working Group, convened by National Treasury. This forum is developing a sustainable finance roadmap for the country, including perspectives on the just transition.
In December 2021, we launched our Sustainability and Climate Change Disclosure Guidance consultation papers to promote transparency and good governance and guide listed companies on best practices in sustainability and climate change disclosure. This climate change disclosure guidance is based on the TCFD framework and the Sustainable Stock Exchange Initiative’s (SSEI) Climate Disclosure Model Guidance.
In June 2022, we published the final Sustainability Climate Change Disclosure Guidance This paper was refined thanks to feedback we received in the public consultation process. This consultation paper will be a valuable resource and tool for all our listed companies, regardless of size or sector and may also be of use to unlisted companies.